Excellon Resources to acquire Otis Gold
Mexican-miner Excellon Resources (TSX:EXN) said Monday it is acquiring Otis Gold in an all-share deal.
Excellon said its purchase of Otis represented a 47% premium based on spot value of Otis.
Excellon is keen on Otis's Kilgore project located in Idaho, United States. the Kilgore Project hosting an Indicated resource of 825,000 oz Au @ 0.58 g/t and an Inferred resource of 136,000 oz Au @ 0.45 g/t, and the Oakley Project hosting an Inferred resource of 163,000 oz Au @ 0.51 g/t. Highlights from the PEA show a post-tax NPV5% of US$185M and an IRR of 54% (@ US$1,500 Au), with initial capital of US$81 million.
"The Kilgore deposit multiplies our resource base and increases our precious metal exposure from approximately fifty percent to over ninety percent. Kilgore represents a low-cost, high-IRR development opportunity that complements and enhances our existing growth pipeline of production and exploration. With Kilgore, we will maintain our focus on exploration, the lifeblood of our industry. We have an immediate plan to grow the existing Kilgore resource and define the larger, multi-million ounce opportunity,” said Excellon President & CEO Brendan Cahill in a news release.
Markets traded Excellon down 5% to 76 cents a share.